Part II. Section 3.4.

13th Month Pay

Total Rewards, Payroll and Benefits Administration, and Labor
Policy Owners
Relations
Issue Date: October 1, 2022 Version: 6.0 Section Page: 1 of 4
Remarks Last version released in June 2016

A. Objective

To comply with the stipulations of Department of Labor and Employment (DOLE) Advisory No. 18
or the "Guidelines on the Payment of the Thirteenth Month Pay," effective October 25, 2021.

B. Policy Statement

It is the policy of the Company to grant a 13th Month Pay to all regular and probationary employees,
regardless of their designation and employment status, and irrespective of the method by which
their wages are paid, provided that they have worked for at least one (1) full month during a
calendar year.

C. Definition of Terms

1. "Thirteenth-month Pay" shall mean one twelfth (1/12) of the basic salary of an employee
within a calendar year. The 13th Month Pay is equivalent to either a one (1) month Basic
Salary or a Proportionate Amount.

1.1. One (1) Month Basic Salary

▪ for employees with at least one (1) full year of service

1.2. Proportionate Amount

▪ for employees with less than one (1) year of service in the Company, provided
that they have worked for at least one (1) full month during a calendar year

▪ for employees who have accumulated unpaid leaves of thirty (30) days or more,
and/or a suspension of one (1) day or more within the cut-off date

▪ for employees who resigned or whose services ended at any period before the
scheduled payment of the 13th Month Pay

2. "Basic Salary" shall include all remunerations or earnings paid by an employer to an

employee for services rendered but may not include cost-of-living allowances, profit-sharing
payments, cash equivalent of unused vacation and sick leave credits, overtime pay, premium
pay, night shift differential, holiday pay, and all allowances and monetary benefits which are
not considered, or integrated, as part of the regular or basic salary of the employee.

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D. Guidelines

1. All regular and probationary employees of the Company shall be entitled to the 13th Month
Pay regardless of their designation and employment status, and irrespective of the method
by which their wages are paid, provided that they have worked for at least one (1) full month
during a calendar year.

Note: For a service to be considered one (1) full month, the hiring date of the new employee
should be the 1st working day of the month.

2. The 13th Month Pay shall be paid on the first (1st) week of November (for regular employees)
and first (1st) week of December (for probationary employees) based on the employees’
Employment Status as of payout date and their respective Basic Salary as of December 1 of
the current year.

3. The 13th Month Pay shall not be credited as part of the regular wage of employees for
purposes of determining overtime and premium pays, fringe benefits, as well as
contributions to the Social Security System (SSS), Philippine Health Insurance Corporation
(PhilHealth), and private retirement plans.

Computation

4. Thirteenth-month (13th) Month Pay equivalent to a One (1) Month Basic Salary

▪ for employees with at least one (1) full year of service

12 months
X 1 Month Basic Salary = 13th Month Pay equivalent to a One (1) Month Basic Salary
12 months

5. Thirteenth-month (13th) Month Pay equivalent to a Proportionate Amount

▪ for employees with less than one (1) year of service in the Company, provided that
they have worked for at least one (1) full month during a calendar year

Number of full months service x 1 Month

= 13th Month Pay equivalent to a Proportionate Amount
12 months Basic Salary

▪ for employees who have accumulated unpaid leaves of thirty (30) days or more, and/or
a suspension of one (1) day or more within the cut-off date

No. of Unpaid Leaves / Suspension

x 1 Month Basic Salary = Total Deduction from the 13th Month Pay
261 days

Basic Salary – Total Deduction from the 13th Month Pay = 13th Month Pay equivalent to a Proportionate Amount

▪ for employees who resigned or whose services ended at any period before the
scheduled payment of the 13th Month Pay
Number of Worked Days x 1 Month
= 13th Month Pay equivalent to a Proportionate Amount
261 days Basic Salary

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 Report Compliance

6. Payroll and Benefits Administration shall generate an annual report of the Company's
compliance with the law upon request by Labor Relations.

7. Labor Relations shall submit a report of the Company's compliance with the law via the DOLE
Establishment Report System not later than January 15 of each year.

E. Responsibilities

1. Total Rewards shall ensure the proper implementation of the 13th Month Pay in accordance
with the Company's compensation program.

2. Payroll and Benefits Administration shall:

• Ensure that all employees of the Company receive their 13th Month Pay, equivalent to
either a one (1) month basic salary or a proportionate amount, on the first (1st) week
of November (for regular employees) and first (1st) week of December (for
probationary employees); and
• Generate an annual report of the Company's compliance with the law upon request by
Labor Relations.

3. Labor Relations shall submit a report of the Company's compliance with the law via the DOLE
Establishment Report System not later than January 15 of each year.

F. Related Documents

Document Type Name of Document

Reference Department of Labor and Employment (DOLE) Advisory No. 18 or the
"Guidelines on the Payment of the Thirteenth Month Pay," effective
October 25, 2021
Process Map Not Applicable
Forms Not Applicable

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Part II. Section 3.4. 13th Month Pay
Issue Date: October 1, 2022 Version: 6.0 Section Page: Concurrence Sheet

CONCURRED BY:

_______________________ _______________________
MR. BENEDICTO M. PORTUGAL II MS. RENELIA L. VILLANUEVA
Executive, Payroll and Benefits Administration Head, Payroll and Benefits Administration

_______________________ ______________________
MR. HECTOR M. PROFETA MS. MARIANNE G. ENTE
Head, Labor Relations Executive, Labor Relations

_______________________ _______________________
MS. RACHEL P. NACION MR. ALLAN JOSEPH S. VALENZUELA
Executive, Total Rewards Executive, Total Rewards

_______________________
MR. JOSEPH MICHAEL VINCENT G. CO
Head, People Operations

APPROVED BY:

_______________________
MS. GINA MARINA P. ORDOÑEZ
Chief People Officer

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